Invesco, TCW Pledge $1.13 Billion to Buy Toxic Assets

Invesco and TCW Group have raised more than $1.13 billion from private investors to buy toxic assets from the government as part of the Public-Private Investment Program, the Department of the Treasury indicated.

With government matchings and debt financing, the two companies’ buying power totals $4.52 billion.

“I am pleased with the progress we have made in launching PPIP,” said Treasury Secretary Timothy Geithner. “This program allows Treasury to partner with leading investment management firms to increase the flow of private capital into the market for legacy securities and give taxpayers a chance to share in the profits.”

In July, the Treasury scaled back the original $700 billion plan with the goal of private fund managers raising up to $10 billion. It invited nine fund companies to participate in PPIP, including BlackRock and Wellington Management.